SF 3596

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/04/2026 11:06 a.m.

A bill for an act
relating to taxation; establishing a onetime emergency rental assistance aid for
counties and Tribal governments; appropriating money; requiring a report.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin APPROPRIATION; EMERGENCY RENTAL ASSISTANCE AID.
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new text begin (a) $66,000,000 in fiscal year 2026 is appropriated from the general fund to the
commissioner of revenue for aid payments to counties as provided under this section.
$9,000,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
of revenue for aid payments to Tribal governments as provided under this section. These
are onetime appropriations.
new text end

new text begin (b) No later than 15 business days after the effective date of this section, the commissioner
of revenue must pay aid to counties using the county distribution formula in Minnesota
Statutes, section 477A.30, subdivision 3. For the purposes of the calculation, the
commissioner must use the appropriation amount provided in paragraph (a) and the
population data and distribution factors used to certify aids payable in 2026 under Minnesota
Statutes, section 477A.30. No later than 15 business days after the effective date of this
section, the commissioner of revenue must pay an equal share of the aid provided in
paragraph (a) for Tribal governments to each Tribal government that chose to receive a
distribution of aid for aids payable in 2026 under Minnesota Statutes, section 477A.30,
subdivision 3a.
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new text begin (c) Counties and Tribal governments must use the money received under this section
only for rental assistance to eligible households.
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new text begin (d) To be eligible for receipt of rental assistance under this section, the household must:
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new text begin (1) have income at or below 200 percent of the federal poverty level;
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new text begin (2) be Minnesota residents; and
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new text begin (3) be homeless or at imminent risk of homelessness and in need of financial assistance
due to a housing crisis.
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new text begin (e) Counties and Tribal governments must spend aid received under this section by the
last day of the sixth month following the month of the effective date of this section. Counties
and Tribal governments must notify the commissioner of revenue of the amount of aid not
spent by the deadline imposed under this paragraph and return that amount to the
commissioner within three months of the spending deadline for cancellation to the general
fund. The commissioner shall prescribe the form and manner of the notification and the
return of unspent aid.
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new text begin (f) Rental assistance funded under this section may be administered by the same entities
allowed to administer family homeless prevention and assistance projects or programs under
Minnesota Statutes, section 477A.30, subdivision 4, paragraph (a).
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new text begin (g) For purposes of this section, "Tribal government" has the meaning given in Minnesota
Statutes, section 477A.30, subdivision 1, clause (4).
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new text begin (h) Within three months of the spending deadline imposed under paragraph (e), each
county and Tribal government that receives aid under this section must submit the following
information to the commissioner of revenue in the form and manner prescribed by the
commissioner:
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new text begin (1) the total number of households to which rental assistance was distributed;
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new text begin (2) demographic characteristics of recipient households, including household size and
income; and
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new text begin (3) the average amount of rental assistance distributed per recipient household.
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new text begin Within five months of the spending deadline imposed under paragraph (e), the commissioner
of revenue must compile the information received from counties and Tribal governments
under this paragraph and submit the compilation in a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over housing and taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end